BASF

FEATURE

BASF strengthens

Polyurethanes businesses
in SA and sub-Saharan Africa
Christian Mirangels outlines BASF Polyurethanes South Africas growth strategy and plans to increase BASFs presence in growing African markets, taking advantage of its global leadership position in polyurethane systems. By Ian Armitage

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BASF Polyurethanes FOCUS MANUFACTURING

In terms of polyurethane consumption in South Africa it is around one kilo per capita per year. In Europe, it is around five kilos per capita. So theres clearly a lot of room to grow and a lot of potential

e use polyurethanes in one form or another every day at home, in our ofces and cars, for sport and leisure activities and on holiday. Theyre versatile, modern and safe and are used in a wide variety of applications to create all manner of consumer and industrial products that play a crucial role in making our lives more convenient, comfortable and environmentally friendly. Global chemical manufacturing company BASF Polyurethanes is a leader in this eld, particularly here in South Africa. It (South Africa) is a key market in Africa for BASF and is a role model for the rest of the African continent, says BASF Polyurethanes South Africas new managing director Christian Mirangels. We expect signicant growth. The companys sales have grown despite difcult global conditions owing to new business and because customers have seen the benet of our local presence. There is lots of potential, he adds. In terms of polyurethane consumption in South Africa it is around one kilo per capita per year. In Europe, it is around ve kilos per capita. So theres clearly a lot of room to grow and a lot of potential. BASF has had a presence in South Africa for over 40 years. In 2006 it brought into CHC Elastogran, a polyurethane systems house that was established as a Joint Venture between CHC and Elastogran. The business grew steadily and it was renamed BASF Polyurethanes South Africa (Pty) Ltd in 2010. Beginning of 2012 BASF acquired the rest of the shares from CHC - now the company is a 100 percent BASF subsidiary. My career spans over 17 years within BASF Polyurethanes and Ive held senior positions in a number of successful entities, including BASF Polyurethanes Turkey where I served as managing director. Im very excited now to be working and living in South Africa. My focus is on the overall operations of the South African systems house, with a strong focus on business development within South and Sub-Saharan Africa of projects in selected industries. Mirangels, who took over two months ago, says sales growth remained positive for the company
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despite the effects of the global economic crisis and believes it is thanks to an ability to supply products to a diverse industry base, which includes the automotive, construction, footwear, mining and white goods sectors. He believes that the companys growth has been buoyed by its continual investment in technology and production capacity aimed at developing high-quality and efficient polyurethane systems for application in a number of industries. That investment will continue. Were developing our site in Elandsfontein and over the next years well continue to modernise and invest in new machinery. According to Mirangels, South Africa is playing an important role in BASFs Africa expansion. The rm has been increasing its presence in the growing African markets and recently opened a new ofce in Nairobi, Kenya, to serve customers in East Africa and Sub-Sahara. Africa is a huge continent with a wealth of raw materials and a growing population. At the same time, the dynamically growing economy has enormous potential. Through establishing a stronger local presence we will
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be able to even further support our customers and to enhance our market position. The companys target is to more than double sales in Africa by 2020. Its sales, excluding oil and gas, were around 1 billion euros in 2010. It is ambitious. But the demand for polyurethane, and its other chemicals, is strong. There is strong demand for polyurethane, particularly in areas like construction where South African and Sub-Saharan African construction rms are starting to pursue green practices and projects. There is also increased demand in mining and a number of other industries. In terms of polyurethane, the market is more established in South Africa than it is in Sub-Saharan Africa, but that represents a growth opportunity. The market will become more established and we are working on that, raising the prole of the material after all, few realise that it is all around us and how it can be applied. Also, I would say the company is certainly proting from a growing middle class with rising consumer aspirations and that is true right across Africa.

BASF Polyurethanes FOCUS MANUFACTURING

Key to the companys successes in Africa are its new East and West African divisions - BASF West Africa, headed by former BASF Polyurethanes South Africa managing director Andrew Bailey, and BASF East Africa, which weve mentioned. This will help us establish stronger local presences in key growth markets and well also be able to offer local support to customers. This combined effort will see us develop considerably in sub-Saharan Africa in the next few years. BASFs success is down to having the right team, the local presence and the right skills and processes in place including a world class product and R&D team. The future is bright.

The aim is to develop in line with our global goal of Best Team in Industry and to create value for our stakeholders, Mirangels says. We also want to continue contributing to our customers success and to do all of this in a sustainable way. Im excited by the future and the challenge ahead, helping also to make meaningful social contributions through BASF and improve peoples lives. Mirangels forecasts growth in South Africa this and the next years and says new energy efciency regulations, which are in place for all new buildings being built in South Africa, are a contributing factor. END To learn more visit www.basf.co.za.

My focus is on the overall operations of the South African systems house with a strong focus on business development within South and SubSaharan Africa of projects in selected industries

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